• Thu. Nov 21st, 2024

PolkaDot Loses $3 Million in a Recent Hack Attack from China

Christian Klausen

ByChristian Klausen

Apr 7, 2021

PolkaDot is a kind of heterogeneous blockchain ecosystem that provides the ability to transfer messages across diverse blockchains by connecting custom side chains with public blockchains. The native token of PolkaDot has been trending above ADA for quite some time and beat many other contenders to reach its current ranking. 

However, in the aftermath of a recent hack attack on the blockchain, DOT has gone 1.48%, down-trending at $43.19 at the moment. The hack attack was directed at Polkatrain, a fundraising platform that is operating in the Polkadot ecosystem. The nature of the attack is said to be a rebate arbitrage that took advantage of a weakness in the recent system update.

The Culprit of the 3 Million Dollar Hack has been Caught

The hack on the Polkatrain was first detected and reported by SlowMist. SlowMist is a cybersecurity enterprise dedicated to blockchain systems. The report by SlowMist indicates that the hacker employed a swap function and rebate mechanism to target Polkatrain. This malware, now called POLT_LB, exploited the buyers of Polkatrain token ‘PLOT’ buyers specifically. 

The system allows the buyers of PLOT to qualify for a percentage of rebates. However, the new update on the ecosystem did not set a maximum limit on the amounts of rebates in a pool; the hacker kept calling the swap function to exchange tokens for getting the contracts. However, the Polkatrain team has managed to identify the hacker by the name of Mr. Jiang, who is a Chinese resident. The team has published his address on their official Twitter account and offered not to pursue legal action if the money is returned. 

How Many Hackers have Claim on the Blockchain and Digital Wallets this Year?

2019 was the year that not particularly great for blockchains. A record 133 hacks were made in the year on several blockchain ecosystems. The number went down a smaller count of 94 last year, keeping in mind the recent updates and the blockchain’s continuous development. Thus far, the total numbers of blockchain breaches are 330, where hackers managed to steal $13.6 billion from the digital asset markets.

The most number of attacks thus far are sustained by EOS Dapps (117), ETH Dapps (33), and Tron Dapps (21). However, many hack attempts are directed at crypto exchanges (87) and digital wallets. Most new users of digital wallets are unable to secure their accounts due to a lack of IT knowledge. In the ongoing year, the number of hacks has dropped down to 31 successful cases and expected to decline, according to a report by Atlas VPN.

Christian Klausen

Christian Klausen

Christian Klausen is a talented news writer renowned for his compelling storytelling and comprehensive research. With a sharp eye for detail, his articles offer readers a thought-provoking and well-informed perspective on a wide range of current topics.

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